It gives me immense pleasure to present the first edition of “Anti-Money Laundering (AML)”, designed for students of Banking and Insurance and other commerce-related programmes under the University of Mumbai. The book has been developed in accordance with the National Education Policy (NEP) 2020 framework and aims to provide students with a comprehensive understanding of money laundering, financial crime prevention, regulatory compliance, and risk management practices in financial institutions.
In today’s interconnected and technology-driven world, financial transactions occur rapidly across borders through banks, insurance companies, digital payment systems, and other financial intermediaries. While these developments have enhanced economic growth and financial inclusion, they have also increased opportunities for criminals to disguise the proceeds of unlawful activities. Money laundering has emerged as a significant threat to financial stability, economic development, and public confidence in financial institutions. Consequently, governments and regulatory authorities across the world have strengthened Anti-Money Laundering (AML) frameworks to combat financial crimes and safeguard the integrity of the financial system.
The primary objective of this book is to provide students with both conceptual and practical knowledge of money laundering and the measures adopted to prevent it. The book covers the fundamentals of money laundering, its stages and techniques, national and international regulatory frameworks, AML compliance requirements in banks and financial institutions, and risk management practices in the insurance sector. It also highlights the role of ethics, governance, and regulatory compliance in strengthening AML programmes.
The content has been presented in simple academic language and supported by examples, illustrations, “Did You Know?” sections, mini case studies, and Continuous Internal Evaluation (CIE) exercises to facilitate effective learning and examination preparation. Special emphasis has been placed on developing analytical thinking and practical understanding of AML compliance in the modern financial environment.
Contents –
Module 1: Introduction to Money
Laundering and Regulatory Framework
1. Fundamentals of Money Laundering
2. Regulatory Framework for AML
Module 2: AML Compliance and Risk
Management in Banking and Insurance
3. AML Compliance in Banks and Financial Institutions
4. AML Risk Management in Insurance Sector
5. Semester End External Sample Question
